During the fourth quarter of 2021, the year-on-year rate of change of Spanish GDP stood at 5.23%, registering a substantial improvement compared to the previous quarter. As for the labour market, the percentage of unemployed in the labour force registered a decrease compared to the previous quarter, falling to a rate of 13.33%. On the other hand, employment registered a rate of variation of 4.35%, despite registering a slight slowdown compared to 3Q21. Inflation grew to a year-on-year rate of 5.80%. Finally, with respect to the exchange rate, the euro depreciated against the dollar in 4Q21, with an average exchange rate of 1.14 $/€.


Macroeconomic outlook report: Spain 4Q21

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Macroeconomic overview

  • In 4Q21, the Spanish economy registered a positive year-on-year variation of 5.23%, which meant an improvement of 2.57 p.p. compared to 3Q21. This result was due to private consumption, which was the main recovery driver, although its future pace will be linked to uncertainty over persistent inflation.
  • Domestic demand increased by 2.07 p.p. compared to the previous quarter, standing at a year-on-year rate of change of 3.56%.
  • Regarding the labour market, the percentage of unemployed in the active population decreased in the fourth quarter of the year down to 13.33%, which meant a deceleration of 1.24 p.p. compared to 3Q21. On the other hand, in 4Q21, the year-on-year variation in employment stood at 4.35%, which represented a slight fall (0.11 p.p.) compared to the previous quarter.
  • Regarding the exchange rate, the euro depreciated against the dollar in 4Q21, standing at an average exchange rate of 1.14 $/€.
  • As for inflation, in 4Q21, CPI growth stood at a rate of 5.80%, after registering an increase compared to the previous quarter of 2.40 p.p.

For more information, click here to access the executive document in pdf (only avalaible in Spanish).